Monday, July 24th, 2023
Despite the ongoing pressure on mortgage interest rates created by the increasing Bank of England base rate and volatile ‘swap rates,’ sourcing platform Twenty7Tec noted increased search activity during the month of June, and, in addition, the Bank of England reported increases in net mortgage lending for purchases and remortgages for May. * **
That said, some economists and industry commentators might argue that these outcomes are based on historical decisions made prior to the period in which the figures were collated, and consequently, any subsequent turmoil in the markets has yet to be factored in.
What is certainly true is that many homeowners, especially those who are coming to the end of their current fixed rate deal, are seriously worried about the impact of increasing rates. Indeed, in some cases, this could mean that an old, fixed rate starting with a one or a two may now be replaced with a rate that starts instead with a five or a six.
With all this in mind, the government has been working with lenders and the wider mortgage industry regarding a ‘Mortgage Charter’ for residential borrowers which it is proposed will offer help, assistance, and short-term options for borrowers struggling to keep up with all their payments and commitments.
This Mortgage Charter sets out how lenders (who have signed up to be part of the scheme) will be able to treat, manage and assist struggling mortgage holders. To try and take away some of the short-term pressure on household expenditure, options include a temporary period of making interest only payments or extending mortgage payments over a longer term.
It is vital that those struggling with their household expenditure should discuss their concerns with their lender. That said, these critical decisions should never be taken lightly as what may appear to be the ‘easy option’ may not always be the most suitable solution available and the difficulty some borrowers may face is that their current mortgage lender will be restricted as to what options can be explored.
Another route is to consider taking advice from a specialist mortgage broker who has access to a comprehensive panel of lenders and who will be able to research and then potentially deliver what in many cases may be a more suitable solution.
Here at Caboodle Finance, our advisers will always take account of any personal circumstances when making our tailored interest rate recommendations. Please check out our testimonials link HERE to discover what our customers think of the first-class service they have received from us.
Then, if you would like some independent professional mortgage advice, call 0121 308 9114 today to speak with one of our friendly team here at Caboodle Financial Services of Sutton Coldfield, Birmingham, or, alternatively please click HERE to contact us via our website and we will be in touch.
We very much look forward to speaking with you.
* Financial Reporter – 26/06/23
** Mortgage Finance Gazette – 03/07/23
The information contained above was correct at the time of publication but is subject to change.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Caboodle Financial Services Ltd
Mere Green House
46-48 Mere Green Road
West Midlands B75 5BT
Telephone: 0121 308 9114